Press Metal Aluminium Holdings Berhad: Green Aluminium Production Insights
Press Metal Aluminium Holdings Berhad (PMETAL) has transformed into a leader in low-carbon aluminium production, leveraging hydroelectric power for a competitive edge. The company’s strategic expansions in solar infrastructure and vertical integration position it strongly for future growth.
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Press Metal Aluminium Holdings Berhad (PMETAL) has pivoted to a low-carbon model by securing long-term hydroelectric power from Sarawak. This approach provides a significant cost advantage, insulating the company from energy price volatility and carbon taxes affecting competitors.
PMETAL's expansion into solar frame extrusion aligns with increasing demand for aluminium in green energy applications, further driving volume in its downstream segment. The firm has hedged 65% of its 2026 aluminium output at favorable rates, de-risking earnings against price fluctuations.
PMETAL reported a record net profit of RM2.14 billion in 2025 and is in a cash harvest phase, focusing on debt reduction and steady dividends. The stock is currently valued at a PE of 27-29x, with a potential upside if LME prices exceed USD 3,000, although risks include price volatility, raw material cost spikes, and currency fluctuations.
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